PAL Craft Plan for Final Restructuring – Manila Bulletin

Philippine Airlines Inc. is working on a “comprehensive recovery and restructuring plan,” according to the airline owned by billionaire Lucio Tan.

The plan will allow it to “emerge financially stronger” from the global crisis, it said in a statement. He did not provide details of the plan, but said he is gradually increasing flights.

The pandemic has devastated the global travel industry, forcing airlines to suspend flights, lay off employees and seek financial help from governments and investors. Companies such as Virgin Australia Holdings Ltd. and Avianca Holdings SA, the second largest airline in Latin America, went into administration or filed for bankruptcy protection. Malaysia Airlines Bhd. It has contacted key landlords, creditors and suppliers as part of its “rush” restructuring exercise.

Early Wednesday, Nikkei Asia reported that Philippine Airlines is ready to seek judicial protection for its debt restructuring. The airline is seeking to return about 20 of its leased jets and raise $ 505 million through debtor-in-possession financing, according to Nikkei Asia, which cited people briefed on the matter and meeting materials reviewed by Nikkei.

In October, the company said it will cut up to 35% of its 7,000 employees as part of its restructuring. Parent PAL Holdings Inc. this month reported a third-quarter net loss of P7.92 billion ($ 164.5 million), bringing its nine-month loss to P28.85 billion.

Finance Secretary Carlos Domínguez told private sector banks earlier this year to take the lead in helping airlines, as the government does not want to take ownership. A plan to establish a state-run investment company that would inject capital into struggling companies, including airlines, is still pending in Congress.